TaxTMI 
TaxTMI 
2007 (3) TMI 666
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....etitioner's products have high sale potentiality abroad and the petitioner has been exporting them. It had registered itself for export and import and sought benefit of the Government policy to encourage such activity. 3. The Government of India, Ministry of Commerce announced several schemes of duty exemptions/remission by which substantially the fee for import of inputs required for export production became permissible. To monitor such activity and to channelise the benefit of the scheme the Ministry introduced (Duty Entitlement Pass Book Scheme) (DEPB) which was intended to neutralize the incidence of customs duty on the import content of the export products. It was provided by way of grant of duty credit against the export produ....
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....nd (2) 21271 on 14-12-1998 and applied for licence which was duly granted to it by the authorities concerned. 7. As per the said licence, petitioner was issued DEPB credit for Rs. 4,32,000/- for the item described at Serial No. 17 in the list of textiles under Appendix 28A vide Annexure-D. Despite this beneficial provision, the Joint Director General of Foreign Trade, Bangalore - the second respondent issued a show-cause notice on 16/17-11-1999 to the petitioner vide Annexure-E. to show cause why the DEPB licence issued on 7-9-1999 shall not be cancelled. The petitioner answered the show-cause notice with acceptable explanation and reiterated that the produce exported by it was well defined under Serial No. 17 of Appendix 28A. But t....
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....ty credit against export product and duty credit shall be calculated by taking into account the deemed import content of the said product as per standard input/output norms and determine the basic customs duty payable on such deemed imports. The value additional achieved by export of such product shall be taken into account while determining the rate of duty credit under the scheme. This is elaborately dealt with in Para 7.25 of Export and Import Policy 1997-2002. Based on this policy of the Union of India, the Duty Entitlement Pass Book scheme was formulated and as per that scheme various items were listed to come within its ambit. The petitioner's products finds place at Serial No. 17. The petitioner had exported its products in the month....
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....sible only to such category of goods which are covered under the policy. Item 17 to which the petitioner claims entitlement has been further described in the general instructions issued on 1-4-1999 and under such general instructions, the DEPB scheme for various types of garment would not cover silk as well as woollen garments unless specifically mentioned in DEPB description. Since no such specific description is found in the DEPB description and item 17 is non-descriptive, the petitioner's products are therefore brought out of the ambit of the scheme and are not entitled to the credit benefit. 12. I have heard both sides. Though the narration of facts is little elaborate, the points that arise for consideration are only two fold :....
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....s has been modified to the disadvantage of the exporters, they shall not be effective as regards the consignments already handed over to the customs and subsequently exported upto the date of public notice. 15. In the instant case, consignments of the petitioner left its hands and was exported on 3-11-1998 and 14-12-1998 respectively that was much before the general instructions were issued on 1-4-1999 whereby the drastic change in the policy was effected describing certain items to be excluded. This being to the disadvantage of the exporter would not affect the export already effected by the petitioner. In this view of the matter, the benefit which has accrued to the petitioner of the policy prior to general instructions on 1-4-199....